A major Medicaid fraud lawsuit has been brought to an end as the pharmaceutical company it was filed against agreed to a $2.67 million settlement.

The Medicaid fraud lawsuit against Med-Fast Pharmacy Inc. alleged that the company submitted false claims to both Medicaid and Medicare, while giving patients at nursing homes unused recycled drugs.

According to court documents, the recycled drugs were mixed back into Med-Fast’s other medications, then used to fill prescriptions. This meant that Medicaid and Medicare were being billed for more medications than they were actually providing. The scheme went on for years, prosecutors noted, from 2009 to 2013.

“We are relieved to say that each of our patients did receive the correct medications and all of our medical partners have chosen to maintain their relationships with us,” said Med-Fast spokeswoman Elisabeth Mistretta in a statement to Law360.

While patients were given unused medications, and were given the proper medications, these were drugs that should not have been billed to either Medicaid or Medicare. Two employees have been criminally charged as a result of this Medicaid fraud lawsuit. One pled guilty back in September 2015 and is expected to face a sentence of 10 to 16 months. The other has yet to make an appearance, but may face up to five years.

Two separate whistleblower lawsuits brought the alleged Medicaid fraud problem to the attention of the federal government. Both lawsuits were filed in federal court in Pittsburgh.

Other allegations brought to an end with this Medicaid fraud settlement are that Med-Fast submitted claims for more expensive diabetes test strips than they actually ordered, also in violation of the False Claims Act.

“Pharmacists and pharmacies must deal fairly and honestly with federal health care programs, and this U.S. attorney’s office will hold accountable those who do not,” said acting U.S. Attorney Soo C. Song was reported saying.

Filing a Whistleblower Lawsuit

Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s actions. A whistleblower lawsuit can be filed while working at the company, but can also be filed after having left the company. Coming forward in this way, or blowing the whistle, calls attention to the fraud on behalf of the government.

Although it can be scary for an employee to report an employer, as they may be worried they will get in trouble or lose their job because of it, a whistleblower is usually given a substantial reward from any settlement money the lawsuit provides. For many this can be between 15 and 30 percent of the settlement money.

If you believe that your employer or former employer is participating in fraudulent or illegal behavior against the federal government, such as Medicaid fraud, you may be able to file a whistleblower lawsuit on behalf of the government.